Gold in the year 2000: A global overview

Abstract

Following the dramatic increase in the gold price during the late 1970s, the western world's gold production increased rapidly from about 750 t to more than 1200 t in 1985 and to the current level of 1900 t in 1993 and 1994. A slight drop in gold production during 1994 and a shortfall of demand over supply of 199 t are in agreement with a detailed evaluation that suggests a growing undersupply of gold to the market‐place over the next five years. Volatility of the gold price during 1994 was low and currently investors do not regard the metal as the important hedge against risk that it was in previous years. Nevertheless the fundamentals are sound and a progressive increase in the gold price is predicted. Cash costs per ounce of gold mined are commonly $210–280 and total costs are generally $50–80 higher. Increased costs, legislative constraints and threats of royalties are encouraging many companies to consider alternative exploration plays, particularly in South America, Eastern Europe and the former Sov...